“If I were a state agency director, I would definitely -- before I start handing out money that I might have to pay back at a time when there’s no way I can pay it back -- I’d be pretty clear on what every single detail is,” Evermore said.
Even in a best-case scenario, the program’s benefits would be limited. FEMA has been authorized to provide up to $44 billion in support, which economists estimate would last just one to two months if paid as intended to millions receiving jobless benefits.
Income Support
Such stimulus has proved essential to consumer spending: Unemployment benefits made up about 7% of Americans’ incomes in June, the biggest share on record. Without any supplemental unemployment payments, one paper estimates local spending would fall 44%.
The technicalities of Trump’s order -- and the interpretation of them -- create a host of challenges. The U.S. Department of Labor released a fact sheet on the program early last week with 29 questions and answers.
One key hitch: States are required to share the costs to some extent, but states can count the money they’re already paying toward unemployment benefits in this calculation. There are also administrative hurdles in determining precisely who’s eligible.
“Any more uncertainty on any level is just the bane of these state agencies’ existence,” Evermore said.
This story was provided by Bloomberg News.